Business Daily from THE HINDU group of publications
Tuesday, Apr 17, 2007
ePaper
Business Daily from THE HINDU group of publications Tuesday, Apr 17, 2007 ePaper |
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Markets
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Stocks Richa Mishra
Investments Cairn Energy owns 69 per cent in Cairn India, Petronas 10 per cent, LIC 4 per cent. Cairn India has raised Rs 8,616 crore from its IPO.
New Delhi April 16 International Finance Corporation (IFC), the private lending arm of the World Bank, has recently acquired seven million shares for about $20 million in Cairn India. According to industry sources, this further strengthens the tie-up between Cairn and IFC. Sources told Business Line that this move of IFC was over and above the $850 million loan the Corporation has extended to Cairn India with 10 other banks and financial institutions for development of the Rajasthan oilfields.
Equity investment
IFC had earlier said that it was considering an equity investment in Cairn India in the form of ordinary shares for up to $45 million equivalent. Cairn India, a wholly-owned subsidiary of the Scottish major Cairn Energy, had come out with an IPO last year. Following the IPO, the parents' share in the company still remains significant. Following the flotation, Cairn Energy owns 69 per cent in Cairn India, Petronas holds 10 per cent, LIC four per cent, and the remaining is with other institutions and individual shareholders. Cairn India has raised Rs 8,616 crore from its IPO.
Oil production
Cairn plans to begin oil production from its Rajasthan blocks in early 2009. The company expects an output of 1,50,000 barrels per day. ONGC has a 30 per cent stake in an oil and gas block in Rajasthan, where Cairn Energy holds the remaining stake and is the main operator. IFC and Cairn propose to invest in number of community projects in Rajasthan Cairn India's primary asset is a 70 per cent working interest in a development area in Rajasthan. In January 2004, it discovered the Mangala oil field.
Key assets
In addition, Cairn India's key assets include operated interests in producing fields at Ravva in Block PKGM-1 (22.5 per cent working interest) in the Krishna-Godavari Basin offshore Eastern India and at Lakshmi and Gauri in Block CB/OS-2 (40 per cent working interest) in the Cambay Basin offshore Western India. Further, Cairn India has interest in a number of exploration blocks across India. For the period 2006 - 2009, the main focus of Cairn is discoveries in Rajasthan, including exploratory, appraisal and phased development drilling, water injection, construction of oil processing and transportation facilities with a capacity of approximately 1,50,000 barrels of oil per day. The share price of Cairn India close at Rs 132.55 at BSEon Monday.
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